Interest Rate Concerns Continue To Weigh On Bay Street

(RTTNews) - Canadian stocks have moved mostly lower during trading on Tuesday, extending the pullback seen over the two previous sessions.

The benchmark S&P/TSX Composite Index has slumped by 193.30 points or 0.9 percent to 20,321.94, falling to its lowest intraday level in over a month.

Concerns about the outlook for U.S. interest rates continue to weigh on the markets amid a sharp increase by U.S. treasury yields.

Recent economic data has led to worries the Federal Reserve may raise rates higher than currently anticipated and keep rates at an elevated level for an extended period.

On Wednesday, the Fed is scheduled to release the minutes of its latest monetary policy meeting, which could shed additional light on the outlook for interest rates.

Healthcare stocks have shown a substantial move to the downside on the day, dragging the S&P/TSX Capped Health Care Index down by 3.4 percent.

Significant weakness is also visible among technology stocks, as reflected by the 2.0 percent slump by the S&P/TSX Capped Information Technology Index.

Real estate, financial and consumer stocks are also seeing notable weakness, while energy stocks are bucking the downtrend.

On the economic front, Statistics Canada released a report showing the annual rate of Canadian consumer price growth slowed to 5.9 percent in January from 6.3 percent in December.

Statistics Canada said prices for cellular services and passenger vehicles contributed to the deceleration, while mortgage interest cost and prices for food continue to rise.

On a monthly basis, Canadian consumer prices rose by 0.5 percent in January after falling by 0.6 percent in December, with the rebound reflecting higher gasoline prices.

A separate Statistics Canada report said Canadian retail sales increased by 0.5 percent in December, led by sales by motor vehicle and parts dealers and general merchandise stores.

The report said core retail sales, which exclude gasoline stations and motor vehicle and parts dealers, also climbed by 0.4 percent.